Corn and soybeans close slightly higher on Tuesday with a lower day in all three classes of wheat.
Tomm Pfitzenmaier with Summit Commodity Brokerage says corn is seeing some short covering as the market is oversold and due for a correction.
Plus, he says traders were evening up positions ahead of the long holiday weekend.
The lower wheat and crude oil markets pulled corn off its highs going into the close.
Soybeans saw spillover strength from the second day of big gains in soybean oil but futures also ended off their highs as the market ran up into chart resistance and consolidated after the inability to take those level out.
However, Pfitzenmaier says the funds are short in all of the grain markets and so rallies will be hard to come by as the speculators don’t have a reason to buy the market.
Supplies are ample according to the USDA reports and weather has been favorable leading traders to adopt the “rain makes grain mentality.”
